Getting started · 2 min read
How Much Mortgage Can I Afford on My Salary in the UAE?
Your salary sets your ceiling, but your existing debts shape it. Here's a simple way to estimate how much you can borrow.
By Trevio ·
Start with the 50% rule
UAE banks limit your total monthly debt payments to 50% of your monthly income. Subtract what you already pay on loans and cards; what's left is the most your mortgage payment can be.
An illustrative example
Say your monthly income is AED 30,000 and you pay AED 3,000 on other debts. Your limit is AED 15,000, minus AED 3,000, so AED 12,000 a month for a mortgage. At an example rate of 4.5% over 25 years, that supports a loan of roughly AED 2.1 million. Rates here are illustrative, not current.
Why your real limit may be lower
Banks often test affordability at a higher rate than your actual rate, and apply their own caps. Your deposit and the property's LTV limit also matter.
What you can borrow versus what's comfortable
Just because a bank approves a figure doesn't mean it suits your budget. Leave room for fees, service charges and a rate rise.
Ways to borrow more
- Clear small debts and reduce card limits.
- Add a co-borrower with qualifying income.
- Extend the term, within age limits.
- Increase your deposit.
FAQs
Is the 50% rule on gross or net income?
Banks assess it against your gross monthly income, but check your lender's method.
Does my bonus count?
Some banks count part of variable income. It varies by lender.
Is the example rate current?
No. It's illustrative only. Use the calculator with a current quote.
Try the Trevio mortgage calculator, then book a free consultation for exact numbers.